Collusion is legal in most countries as it form part of the oligopoly but in South Africa it is not legal for companies to collude on prices. As evidence, the Competition Commission has fined several SA companies for price collusion.
B financially protect against unexpected accident
Answer:
false
Explanation:
Price variances arise from a difference in the unit price per budget known as the standard price and the actual price (cost) incurred in the purchase.
Where the actual price paid for materials is higher than the standard price, the price variance is said to be unfavorable.
On the other hand, if the actual price of the materials is lower than the standard price, it is said to be a favorable price variance.
As such, If you spend less money (actual) on an item than you planned (standard) to spend, this is a favorable variance in your budget analysis.
The right answer is false.
Answer:
The company issues new common stock.
Explanation:
As we know that the cash balance have the debit balance so if there is increase in cash balance so the balance would remain in debit itself
In the given choices, the company issues common stock which increases the cash balance and the journal entry is as follows
Cash Dr XXXXX
To Common stock XXXXX
(Being the common stock is issued for cash)
And, the rest transactions shows the outflow of cash
Answer:
$3,600
Explanation:
According to the scenario, computation of the given data are as follows,
Bonds Face value = $50,000
Discount = 4%
Time period = 20 years
Interest rate = 7%
Premium = $50000 - ( $50,000 × 96%) = $2,000
So, we can calculate interest expense by using following formula,
Interest expense = ($50,000 × 7%) + ($2,000 ÷ 20)
= $3,600